AML/KYC Mix Questions

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FULL FORMs:  FATF, AML, CET, CDD, PMLA, CIP, FIU IND

FATF : Financial Action Task Force
AML : Anti Money Laundering
CFT : Combatting Financing of Terrorism
CDD: Customer Due Diligence
PMLA : Prevention of Money Laundering
CIP : Customer Identification Procedure
FIU IND : Financial Intelligence Unit India


PMLA Act is applicable on RRB?
Ans- No

Business corresponds in banking are for
a) providing services to premium customers

b)providing services to children
c)servicing weaker section of society
d)servicing educational institutions

Maximum punishment by the way of imprisionment of offence committed under money laundering act is...years.

12

7

10

9

Ans- 10 years

When does the identity and address of the walk in customer needs to verified?

The amount of transaction exceeds 100000

The amount of transaction exceeds 500000

The amount of transaction exceeds 50000

None of these

Ans- c

Who can be nominated as a designated director for an association or a body of individuals under rule 2 b a of PML act?

a. Proprietor

b. Managing Trustee

c. Managing Partner

d. A person who manages the affairs of the entity

Ans-

The term “Hawala” is an ----- word
Telugu
English
Arabic
Islamic
Ans- Arabic

Anti Money Laundering measures were originally introduced by?
DICGC
EXIM Bank
FDIC
SEBI
Ans- sebi

 FATF is located at
1. Mumbai
2. New York
3. Paris
4. Japan
Ans- Paris

Under KYC norms Banks should prepare :
a profile for each new customer based on risk categorisation.
a profile for each new customer based on constitution.
a profile for each new customer based on financial status.
a profile for each new customer based on own funds

What is CFT under KYC /AML regulations ?
Combating the financing of terrorism
Calculating financial terrorism
Commission on financial terrorism
Committee on financial terrorism

____ are fake companies that appear on paper, but may not physically exist.
1. Front Companies
2. Offshore Banking
3. Hawala Systems
4. Shell Companies

Ans- 4

What could happen to compliance officers if they do not comply with the anti-money laundering laws and regulations?
A. Their employers could face reputation damage, but the employee is immune from penalty.
B. Loss of job, prison penalties and fines, negative reputation to their employer.``
C. Nothing. Only the financial institution’s legal counsel will be responsible for complying with laws.
D. Nothing. Only the staff directly handling transactions have to worry.

Money Laundering means –
Conversion of illegal money into legitimate money
Conversion of cash into gold to make them legitimate
Conversion of assets into cash to make them legitimate
Conversion of assets to invest in Laundromat

Which of the following is the cardinal rule for bankers in anti-money laundering efforts -
A. Know Your Customer & Know Your Employee
B Know the Customer of the other Banks
C. Know the income of the Customers of your Bank
D. Know the Assets Position of the customers of the Bank

The main objective of KYC is to -
A. Prevent Money Laundering activities

B. Improve Customer Service
C. Improve Customer Documentation Standards 

D. None of these
Ans- a

Who enlists the format of CTR
1. SEBI
2. RBI
3. Ministry of Finance
4. Ministry of Company Affairs
Ans- b

Q.Which of the following is the cardinal rule for bankers in anti-money laundering efforts -
A. Know Your Customer & Know Your Employee
B Know the Customer of the other Banks
C. Know the income of the Customers of your Bank
D. Know the Assets Position of the customers of the Bank

The money laundering stage which is instrumental in hiding the trail of the illegal money 
1. Placement
2. Layering
3. Integration
4. Smurfing

Correct me for any mistake .